Thursday, September 25, 2008

Last major investment banks change status

It was the end of an era on Wall Street as the Federal Reserve granted permission for the last two major investment banks — Goldman Sachs and Morgan Stanley — to become bank holding companies in order to stay in business.

The Fed announced late Sunday evening that it had approved the request, which will allow Goldman and Morgan Stanley to create commercial banks that can take deposits, bolstering the resources of both institutions.

The change is the latest seismic shift on Wall Street as the financial system tries to cope with mounting problems that began more than a year ago with the subprime mortgage crisis.

The Fed had originally said Sunday night that the change in status from investment banks to bank holding companies would not take place for five days, pending review on antitrust grounds. The Fed announced Monday, however, that after discussions with the Justice Department, the status change for both institutions could take place immediately.

After weekend meetings where the Treasury Department, Fed and congressional staff ironed out the program's details, Sen. Christopher Dodd said Monday it's equally important to act responsibly as it is to move quickly on the legislation needed to stabilize the country's troubled financial markets.

Dodd, chairman of the Senate Banking committee, said on CBS's "The Early Show" that many members of Congress believe a legislative relief package also should be tailored to protect taxpayers in the best way possible.

Democrats in Congress said they will add provisions in the bailout measure to protect people in danger of losing their homes and measures to cap executive compensation at firms who get to unload their bad mortgages debt onto the government.

But the proposal is still expected to win quick congressional passage because both parties are concerned about the adverse reaction in financial markets should the measure look like it is being delayed.

The Fed's board of governors granted the investment banks' requests by unanimous vote during a late Sunday meeting in Washington.

The change of status means both companies will come under the direct regulation of the Fed, which oversees the nation's bank holding companies. The banking subsidiaries of the two institutions will face the stricter regulations that commercial banks are required to meet. Previously, the primary regulator for Goldman and Morgan Stanley was the Securities and Exchange Commission.

Shares of both institutions had come under pressure ever since the bankruptcy filing last week by investment bank Lehman Brothers and the forced sale of investment bank Merrill Lynch to Bank of America.

Three people familiar with the matter said Monday that Japan's largest brokerage Nomura Holdings is buying Lehman's Asian assets. Britains Barclay's Bank received bankruptcy court approval early Saturday morning to purchase Lehman's North American brokerage operations.

Shares of Morgan Stanley rose 3.5 percent on word of a possible investment by a Japanese bank while Goldman's fell 3.6 percent in afternoon trading on Monday. Overall, U.S. stocks pulled back Monday. In early afternoon trading, the Dow fell 245.71, or 2.16 percent, to 11,142.73. Broader stock indicators also declined.

Investors feared that the last remaining independent investment banks would not be able to survive in their current form, especially after hedge funds saw some of their funds at Lehman Brothers frozen as part of its bankruptcy. There had been speculation that both institutions would be acquired by commercial banks, whose ability to take deposits would give them a stable source of funding.

In the surprise announcement late Sunday, the central bank said Goldman and Morgan Stanley would be allowed during a transition period to get short-term loans from the Federal Reserve Bank of New York against various types of collateral.

The decision means that Goldman and Morgan Stanley will be able not only to set up commercial bank subsidiaries to take deposits, giving them a major resource base, but they will also have the same access as other commercial banks to the Fed's emergency loan program.

After the collapse of Bear Stearns and its forced sale to JP Morgan Chase last March, the Fed used powers it had been granted during the Great Depression to extend its emergency loans to investment banks as well as commercial banks. However, that extension was granted on a temporary basis.

Hi !.might , perhaps very interested to know how one can make real money . There is no initial capital needed You may start to get income with as small sum of money as 20-100 dollars.

AimTrust is what you needThe firm represents an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

It is based in Panama with affiliates around the world.Do you want to become an affluent person? That`s your choice That`s what you desire!

I feel good, I began to get real money with the help of this company, and I invite you to do the same. It`s all about how to choose a correct partner utilizes your money in a right way - that`s it!.I earn US$2,000 per day, and my first investment was 500 dollars only! It`s easy to join , just click this link http://ugilabag.freewebsitehosting.com/utybevir.html and lucky you`re! Let`s take our chance together to get rid of nastiness of the life

Hello !.might , probably very interested to know how one can manage to receive high yields . There is no initial capital needed You may start to get income with as small sum of money as 20-100 dollars.

AimTrust is what you thought of all the timeThe company incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

Its head office is in Panama with affiliates everywhere: In USA, Canada, Cyprus.Do you want to become a happy investor? That`s your choice That`s what you really need!

I feel good, I started to take up income with the help of this company, and I invite you to do the same. If it gets down to select a proper companion who uses your savings in a right way - that`s AimTrust!.I earn US$2,000 per day, and my first deposit was 1 grand only! It`s easy to get involved , just click this link http://umetocehig.fcpages.com/amiropex.html and go! Let`s take our chance together to become rich

Good day !.You may , probably curious to know how one can make real money . There is no initial capital needed You may commense to receive yields with as small sum of money as 20-100 dollars.

AimTrust is what you haven`t ever dreamt of such a chance to become richThe company incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

Its head office is in Panama with affiliates around the world.Do you want to become really rich in short time? That`s your choice That`s what you really need!

I feel good, I started to get real money with the help of this company, and I invite you to do the same. If it gets down to choose a proper companion utilizes your savings in a right way - that`s it!.I take now up to 2G every day, and what I started with was a funny sum of 500 bucks! It`s easy to get involved , just click this link http://betyzima.ibnsites.com/ywyrudi.html and go! Let`s take this option together to get rid of nastiness of the life

I am thinking about getting forex Fap Turbo. I want to know is it good for beginners. t is good? I am a noob and want to hear from anyone who has purchased it. I read the reviews but I am still not sure. I have heard only good things about it but then that's to be expected from reviews. [url=http://www.youtube.com/watch?v=l_g8RMKfk5w]unlock iphone[/url]

Hello everyone!I would like to burn a theme at here. There is such a nicey, called HYIP, or High Yield Investment Program. It reminds of ponzy-like structure, but in rare cases one may happen to meet a company that really pays up to 2% daily not on invested money, but from real profits.

For several years , I make money with the help of these programs. I don't have problems with money now, but there are heights that must be conquered . I get now up to 2G a day , and my first investment was 500 dollars only. Right now, I managed to catch a guaranteed variant to make a sharp rise . Turn to my blog to get additional info.

Arent you concerned about it? I hope it swells terribly. For instance, to spend it. I dont read the stuff. Well, metallurgy is not exactly—what shall we say? No principles have ever had any effect on society. Yet we have to deal with them. I have been disillusioned so often.

Hed been brought to his old suite of rooms and laid out on his bed. Hyles hand came up to brace on his shoulder, encouraging him to look up again. A little while ago. His attention was on her again, those red eyes intense even over the distance. Then she opened her eyes. She matched his grin as he rose. Sitting up, she rubbed her hands. Smiling, too happy to remain still, Eyrhaen pushed up onto all fours over Hyles hips. Her heart stopped at seeing him close after over a moon of avoiding him. She wished he were there, but she understood why it was best that he wasnt. Through a veil of unwanted tears, she glared at the receding door. Ive gotten better at controlling it. Her lips parted under the soft caress of his breath, but he didnt kiss her. Gods damn it, someone fuck me already. She wiggled, and he stopped. Dangerously serious behind his smile, he dragged his gaze back up to meet hers. Her pulse sped as he crossed her threshold. The three of them were much more comfortable on their own. I wouldnt want to deny you. The sweet talk is no longer necessary, she murmured.

Savous dearly wished to believe that Hyle was enjoyably distracted now, but he knew better. His hands came over her eyes, which wouldnt see then the black truly took over. His hands at her waist steadied her as he obediently scooted forward in the chair. They had him clean in moments. She would not cause that fear tonight. Just because theyd agreed didnt mean she didnt feel the urge. Thats what youre happy about? But thats not what she agreed with Radin. I could have been right! Yes, Brevin agreed, thumbing aside a tear that slid down her cheek. At first she didnt understand, but then there was Brevins flinch. I said a lot of things. Both Brevin and Tykir burst out laughing. But it dawned on her the he he meant was Radin. She narrowed her eyes and looked back at his face. She was no stranger to compliments, nor protestations of devotion. She nodded, understanding the attraction from Brevins, Lanthans, and Tykirs points of view. She didnt know how to interpret his small smile. She nipped at his ear as he carried her through her bedroom door.

She pushed into the barrier again and sought his square chin and gorgeously wide mouth. He looked so…vivid, almost more real than the other two men, or perhaps less real. A number of prices? They had him clean in moments. Shaking, she stood still until she thought her vision might be back to normal. [url=http://blacky.0fees.net]black shot[/url]